Matter of Saunders

Summary

The Appellate Division, Second Department, affirmed an order and decree in a proceeding under SCPA article 19 concerning the disposition of estate real property. The court upheld summary judgment relief vacating and declaring null and void a deed to American Regional Capital, LLC, for purposes of allowing the Public Administrator to sell the property and preserve the estate's sole asset. The court concluded that the Public Administrator established the necessity of the sale and that ARC failed to raise a triable issue of fact.

Holdings

1. The automatic vesting of title in intestate distributees remains subject to the Surrogate's Court's authority to direct disposition of estate real property for statutory purposes, including satisfying estate obligations, distributing shares, and other necessary purposes.
2. The Public Administrator was entitled to summary judgment to the extent necessary to vacate the subject deed and permit an arm's-length sale of the property because the sale was necessary to avoid foreclosure and preserve the estate, and ARC failed to raise a triable issue of fact.

Questions Presented

1. Whether the Surrogate's Court properly granted summary judgment permitting the Public Administrator to vacate the deed for the limited purpose of selling the estate's real property.
2. Whether the deed could be declared null and void and stricken of record notwithstanding ARC's asserted possibility of a fractional interest acquired from a rightful heir.

Disposition

affirmed